Mathematical and Graphical Interpretation of Tax Tables
Abstract
The average tax rate and the marginal tax rate are the most important tools used to
distinguish tax table types and perceive structure of tax table. The relationship between
these two variables and progress within themselves gives us many clues about the tax
tables. In this study, after describing the theoretical background of tax tables, the
mathematical background has been put forward by proving some proposals related to
tax tables. The tax amount, the average tax rate and the marginal tax rate are formulated
separately for each tax table type and the relationships among them are shown
mathematically. Then the progress of the average tax rate curve under certain conditions
is interpreted geometrically.
Keywords
References
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